Te taiao

Te taiao

Support the just transition to a net-zero economy

Build the capability to appropriately take climate change risks into consideration when making lending decisions
Fund Heartland’s borrowers’ transition to a net-zero economy
Embed sustainability into what Heartland does
Environmental risk screening

In 2023, Heartland developed an environmental risk screening tool to be used in the credit decisioning process to understand the sustainability of its larger business and rural borrowers by reference to environmental, climate, reputational and regulatory factors (and mitigating actions being employed by borrowers). The tool enables a rating to be provided for each of those factors, which is then considered in the initial credit decisioning process, and as part of the ongoing credit review process.

Heartland is currently undertaking scenario analysis to better understand the resilience of its business strategy in light of possible climate related risks and opportunities and will be disclosing these risks within our FY2024 Climate Related Report.

17% reduction in GHG
Unaudited operational Greenhouse Gas (GHG) emissions for FY2023 saw a 17% reduction on the base year for FY2019.
72% reduction
in Scope 2
GHG emissions
Heartland saw a 34% reduction in Scope 1 and a 72% reduction in Scope 2 GHG emissions. However, business travel requirements increased this year and therefore so did our Scope 3 GHG emissions.
Funding new generation vehicles

Heartland is funding its borrowers’ transactions to a net-zero economy and phasing out lending on diesel passenger vehicles.

Heartland more than doubled the proportion of new generation private vehicles funded through its Motor Finance portfolio in FY2023 and intends to increase the proportion of new generation vehicles financed through our Motor Finance portfolio.

Heartland’s new “iOwn” guaranteed future value (GFV) vehicle finance product, for Peugeot, Citroen and Opel vehicles enables a borrower to purchase a new generation vehicle with ease, though lower weekly repayments with no deposit and a minimum GFV (de-risking new generation vehicle ownership).

Our environmental champions

Heartland’s Green Team is a committee of environmentally conscious employees who have organised various environmental initiatives across FY2023 to educate and promote good sustainability practice. This has included an environmental themed quiz night promoting Earth Week, a volunteer day planting trees at the Whau River Trust in West Auckland, organising an audit of waste generated at Heartland’s Auckland offices (and raising awareness of ways to reduce that waste) and arranging the installation of LED lighting at Heartland’s Auckland offices.